Weekly Market Report 12/30/13

This Week’s Headlines:

Gold
Silver
Major Rare Coin Convention in Orlando, FL
Pre-order 2014 First Strike Silver Eagles
Recommended Investment Commitment and Diversification

GOLD

Last week Gold traded in a narrow $20 range on light holiday type volume. Gold closed the week at $1,214, up $10.30 per ounce. The volume should pick up this week, but I am not optimistic because today I am still seeing year-end tax loss selling and window dressing by many funds. Today, Gold sold down to $1,201 per ounce before seeing respectable demand. The good news is that Thursday is a new year and if Gold can establish a base at the $1,200 per ounce support level, we should see fresh buying. I believe that there are a number of dealers, like myself, who will be aggressive buyers in order to fill orders for Gold and Silver in January.

Last week I listened to financial market analysts on CNBC, CNN, MSNBC, FOX, and Bloomberg make their 2014 predictions. I would estimate that 90% of these experts are bearish with their 2014 outlook for Gold and Silver. Many of them feel there is no good reason to own precious metals, and that the real growth will be in equities. The popular opinion is that there is no inflation now and the world’s major governments will keep tight controls on their economies thus not allowing inflation to happen in the near future. Clearly, many of these financial analysts must not have read their history books.

As I work on the final draft of my 2014 Hyper-Inflation Booklet (February 2014 release date) I find many of the analysts opinions very upsetting, short-sighted, and shallow. While doing research for the 2014 version of the Hyper-Inflation Booklet I realized I have never seen a more bullish scenario for precious metals in my life. The combination of unprecedented global monetary stimulus programs, record physical demand from central banks and investors from Asia to the Middle East, and the dramatic drop in physical supplies, will make 2014 a very rewarding year for precious metal investors.

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SILVER

Surprisingly, Silver rallied $0.60 (3%) last week, as Gold only increased $10 (0.84%) during the low volume holiday week. Silver found it difficult to move above the $20 resistance level until it reached $20.04 per ounce on last Friday’s close. $19.10 per ounce is a very important support level for today and tomorrow’s light trading sessions. If the volume of Silver trading picks up and shows good price support at the current level, the outlook for January could be very bullish. The much watched Gold/Silver ratio is now at 60.55 to 1.

As of December 27, 2013, the U.S. Mint reported they have sold 42,675,000 1oz .999 Silver Eagles. This is an all-time record high for sales of American Silver Eagles. The combination of heavy demand and low market price has been the major factor for reaching this record.

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Major Rare Coin Convention in Orlando, FL

Next Tuesday, January 7, 2014, I am flying to Orlando for the Florida United Numismatic (FUN) Coin Convention. This convention is a major event for the rare coin community, with thousands of dealers, investors, and collectors attending. In addition to having a trading floor with over 500 rare coin dealers, there will also be a major rare coin auction. I am asking my rare coin clients to email me an updated want list. I recommend emailing me ASAP. I’ll be at Table 107 on the bourse convention floor should you be in the area and wish to stop by to say hello.

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Pre-order 2014 First Strike Silver Eagles

Stuppler & Company is now accepting orders for 1st Strike U.S. 2014 Silver Eagles at only $4.19 over spot in lots of up to 499, and $3.99 over spot for 1st strike in the Green Monster box (500 coins).

You can lock in today’s low Silver price for delivery early in 2014. Call or email me at 888-454-0444 or [email protected].

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification:  Gold 50%, Silver 45%, Platinum & Palladium 5%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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REMEMBER THE BLOG

If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time.  Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein.  Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability.  All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

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